Anil Ambani-led Reliance Capital has termed the allegations of diversion of funds by its statutory auditor PwC as baseless and said as a core investment company, they are required to fund only group entities.

PwC, which quit as auditor of Reliance Capital and Reliance Home Finance, has informed the Corporate Affairs Ministry about certain irregularities in the books of these companies.

“PwC’s observations are completely baseless and unjustified. PwC has acted prematurely without even statutory discussions with the audit committee,” Reliance Capital said in a statement.

Reliance Capital’s continuing auditor has been mandated by the audit committee to submit its independent report on PwC’s observations within 15 days.

“Reliance Capital is by law required to fund only group entities, being a core investment company (CIC),” it said.

“All resources have been utilised purely to support group debt servicing of ₹35,000 crore in the past 14 months,” Reliance Capital said.

The firm added it is confident that the independent report of the continuing auditor will establish that there were no irregularities.